A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock outstanding as of the beginning of 2024. The company has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 Issues 47,000 additional shares of $1 par value common stock for $44 per share. Purchases 4,200 shares of treasury stock for $47 per share. Declares a cash dividend of $1.10 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,100 shares of treasury stock purchased on May 10 for $52 per share. The company has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,00 Additional Paid-in Capital, $3,700,000; and Retained Earnings, $1,200,000. Net income for the year ended December 31, 2024, is $520,000. Required: Prepare the statement of stockholders' equity for the company for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance, December 31 A COMPANY Statement of Stockholders' Equity For the Year Ended December 31, 2024 $ Additional Paid-in Capital 100,000 $ 3,700,000 $ 1,200,000 $ Common Stock Retained Earnings Treasury Stock 0 Total Stockholders' Equity $ 5,000,000
A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock outstanding as of the beginning of 2024. The company has the following transactions affecting stockholders' equity in 2024. March 1 May 10 June 1 Issues 47,000 additional shares of $1 par value common stock for $44 per share. Purchases 4,200 shares of treasury stock for $47 per share. Declares a cash dividend of $1.10 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,100 shares of treasury stock purchased on May 10 for $52 per share. The company has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,00 Additional Paid-in Capital, $3,700,000; and Retained Earnings, $1,200,000. Net income for the year ended December 31, 2024, is $520,000. Required: Prepare the statement of stockholders' equity for the company for the year ended December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) Balance, January 1 Issue common stock Purchase treasury stock Declare dividends Payment of cash dividends Resell treasury stock Net income Balance, December 31 A COMPANY Statement of Stockholders' Equity For the Year Ended December 31, 2024 $ Additional Paid-in Capital 100,000 $ 3,700,000 $ 1,200,000 $ Common Stock Retained Earnings Treasury Stock 0 Total Stockholders' Equity $ 5,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock
outstanding as of the beginning of 2024. The company has the following transactions affecting stockholders' equity in 2024.
March 1
May 10
June 1
Issues 47,000 additional shares of $1 par value common stock for $44 per share.
Purchases 4,200 shares of treasury stock for $47 per share.
Declares a cash dividend of $1.10 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on
treasury stock.)
July 1
Pays the cash dividend declared on June 1.
October 21 Resells 2,100 shares of treasury stock purchased on May 10 for $52 per share.
The company has the following beginning balances in its stockholders' equity accounts on January 1, 2024: Common Stock, $100,000;
Additional Paid-in Capital, $3,700,000; and Retained Earnings, $1,200,000. Net income for the year ended December 31, 2024, is
$520,000.
Required:
Prepare the statement of stockholders' equity for the company for the year ended December 31, 2024. (Amounts to be deducted
should be indicated by a minus sign.)
Balance, January 1
Issue common stock
Purchase treasury stock
Declare dividends
Payment of cash dividends
Resell treasury stock
Net income
Balance, December 31
A COMPANY
Statement of Stockholders' Equity
For the Year Ended December 31, 2024
$
Additional
Paid-in Capital
100,000 $ 3,700,000 $ 1,200,000 $
Common Stock
Retained
Earnings
Treasury Stock
0
Total
Stockholders'
Equity
$
5,000,000
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